Correlation Between 10X Genomics and Guardant Health
Can any of the company-specific risk be diversified away by investing in both 10X Genomics and Guardant Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 10X Genomics and Guardant Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Genomics and Guardant Health, you can compare the effects of market volatilities on 10X Genomics and Guardant Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 10X Genomics with a short position of Guardant Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and Guardant Health.
Diversification Opportunities for 10X Genomics and Guardant Health
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 10X and Guardant is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and Guardant Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardant Health and 10X Genomics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on 10X Genomics are associated (or correlated) with Guardant Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardant Health has no effect on the direction of 10X Genomics i.e., 10X Genomics and Guardant Health go up and down completely randomly.
Pair Corralation between 10X Genomics and Guardant Health
Considering the 90-day investment horizon 10X Genomics is expected to under-perform the Guardant Health. But the stock apears to be less risky and, when comparing its historical volatility, 10X Genomics is 1.22 times less risky than Guardant Health. The stock trades about -0.06 of its potential returns per unit of risk. The Guardant Health is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 2,307 in Guardant Health on August 31, 2024 and sell it today you would earn a total of 1,203 from holding Guardant Health or generate 52.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
10X Genomics vs. Guardant Health
Performance |
| Timeline |
| 10X Genomics |
| Guardant Health |
10X Genomics and Guardant Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 10X Genomics and Guardant Health
The main advantage of trading using opposite 10X Genomics and Guardant Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, Guardant Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guardant Health will offset losses from the drop in Guardant Health's long position.| 10X Genomics vs. Twist Bioscience Corp | 10X Genomics vs. Fate Therapeutics | 10X Genomics vs. Beam Therapeutics | 10X Genomics vs. Veracyte |
| Guardant Health vs. Illumina | Guardant Health vs. Twist Bioscience Corp | Guardant Health vs. Natera Inc | Guardant Health vs. Caredx Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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